SoundHound AI (NASDAQ: SOUN) stock soared on Thursday after tech powerhouse Nvidia (NASDAQ: NVDA) revealed it had invested millions of dollars in the burgeoning artificial intelligence (AI) firm.
Nvidia (NVDA) disclosed in its recent Securities and Exchange Commission (SEC) filing that it acquired nearly $3.7 million worth of SOUN stock during the last quarter. This revelation was made public in the filing released late Wednesday.
SoundHound AI (SOUN), renowned for its groundbreaking system that translates human speech into AI-readable language, counts tech titans like Oracle (NYSE: ORCL), Square (NYSE: SQ), Hyundai (OTCMKTS: HYMTF), and Stellantis’ (NYSE: STLA) Jeep unit among its top clients.
Nvidia’s Stakes in Other Companies
Nvidia (NASDAQ: NVDA) also disclosed a $147.3 million stake in Arm Holdings (NASDAQ: ARM), a leading developer of chip designs used in most smartphones, tablets, and data centers.
In 2020, Nvidia made a $40 billion bid to acquire Arm. However, the deal fell through in 2022 due to regulatory challenges. The setback turned into a blessing for Arm because it had its most successful initial public offering in 2023. Consequently, Softbank Group Corp. enjoyed a significant gain.
Softbank, which acquired chip designer Arm for $32 billion in 2016, still retains the majority ownership of the company. This year, Softbank has witnessed a substantial increase in value, thanks to Arm, with the stock surging by over two-thirds, elevating its market worth to $130 billion.
Moreover, Nvidia bolstered its position in Recursion Pharmaceuticals (NASDAQ: RXRX), increasing its stake to $76 million from $50 million. Recursion harnesses artificial intelligence to accelerate the drug discovery process. NVDA has expressed interest in leveraging the company’s solutions to bolster the advancement of “AI models for drug discovery,” as per Reuters.
Finally, Nvidia injects $380,000 into Nano-X Imaging (NASDAQ: NNOX), an Israeli company that enables medical practitioners to use AI to evaluate chest and abdomen CT scans.
SoundHound AI (NASDAQ: SOUN) Stock Reaction
SOUN stock surged 66.74% to close at $3.76 on Thursday. The traders had exchanged hands with 293,057,266 (293.05 million) shares compared to the average daily trading volume of 9.73 million.
Zabih Ullah is a seasoned finance writer with more than ten years of experience. He is highly skilled at analyzing market trends, decoding economic data, and providing insightful commentary on various financial topics. Driven by his curiosity, Zabih stays updated with the latest developments in the finance industry, ensuring that his readers receive timely and relevant news and analysis.
